UBO Registration within the European Union

The Ultimate Beneficial Owner (UBO) register was introduced in the European Union under Directive (EU) 2015/849 (4th AML Directive) to combat money laundering and terrorist financing. On 30 May 2024, new European legislation was adopted, including the 6th Anti-Money Laundering Directive (6th AML Directive) and an EU AML Regulation. These changes aim to harmonize UBO registration across all Member States and will take effect on 9 July 2027.

Key Aspects of UBO Registration

1. Legal Basis and Requirements
Each Member State of the EU must implement the 6th AML Directive into national law, while the Regulation will have direct effect, ensuring uniformity. The legislation introduces stricter UBO identification and registration requirements.

2. Who Qualifies as a UBO?
A UBO is an individual who:

• Holds more than 25% of shares, voting rights, or ownership interest in an entity.
• Exercises ultimate control over an entity by other means.
• If no individual qualifies, senior managing officials may be designated as pseudo-UBOs.

3. Registration Obligations
Depending on the specific requirements in each Member State, you have a legal obligation to register the UBOs of the entity in the UBO register. Each Member State shall have its own manner of registration. The registration must be accurate, complete, and timely.  Required information shall depend per Member State and may include:

• Name, date of birth, nationality, and address.
• Nature and extent of the UBO’s interest in the entity.
• Date of identification as a UBO.

Registration must be accurate and kept up to date. Non-compliance may result in sanctions under the relevant laws of the specific Member State.

4. Access to the UBO Register
Access varies by Member States. In some Member States the amount of access is diversified between different groups:

• Authorities (tax), financial intelligence, investigative services and institutions that fall under the AML legislation, such as banks to conduct custmer due dilligence,
• Limited information is publicly available (e.g., name and country of residence).
• Due to privacy concerns, public access in the Netherlands has been restricted following a ruling by the European Court of Justice in 2022.

5. Compliance and Reporting Obligations
In some Member States, institutions that qualify as AML-institutions must verify UBO information. If discrepancies arise between their findings and the register, they must report these to the relevant register.

Why Ecovis?

With offices within most EU Member States, we offer localized expertise and personalized solutions that cater to the specific needs of each market. Our experienced professionals are well-versed in local laws and regulations, which allows us to guide you through the process of UBO registration formalities and keeping your UBO registration accurate and up to date. Whether you need advice regarding UBO registration or help in arranging your UBO registration, we are equipped to provide the right support.

At Ecovis, we are committed to helping businesses expand globally with ease and confidence, while maintaining the local required obligations in filings and registrations for businesses. Don’t hesitate to contact us to learn more about how we can assist you in further UBO filings and UBO registrations.